With the phenomenal success of Bill Gates, Steve Jobs, and other tech entrepreneurs over the past few decades, it’s no wonder tech-savvy people want to start their own companies in hopes of becoming the next Microsoft or Apple. However, while it took tremendous effort and skill to build these companies decades ago, 2017 is a different world, and in many ways much more complex. Because of this, there are numerous factors to consider when deciding to build a tech company today. However, if you’re determined to be the next Silicon Valley success story, here are some tips to ensure your company gets off to a great start.
Obtain an IT Degree
While it’s not mandatory to have an IT degree before starting a tech company, most experts agree it offers numerous advantages. Not only does it provide the specific skills used in the industry, but it also teaches about how tech companies are formed and how they fit into today’s modern business world. In many cases, IT professors have worked for some of the world’s most prestigious tech companies, and can lend insight into what makes a company successful.
Recruit the Best Talent
Along with having an IT degree yourself, it’s a good idea to seek out the best tech talent on campus and hire them for your company. To ensure you get the best people for your company, be willing to sweeten the pot by offering them equity in the business. For example, if you’re hiring a Vice-President or Senior Manager, offer them a stake of up to two percent in the firm, which if all goes well could be worth millions of dollars someday.
Obtain Funding
As with any business, a tech company needs money to get started. Therefore, obtaining funding should be one of your top priorities. Since this can sometimes be the most difficult part of starting any business, there are some things to keep in mind. Most businesses that go into debt to finance startup operations fail. Even businesses that mature can have precious cash flow siphoned off as maintenance on debt. In general, this is not a recommended method of obtaining financing for young businesses. Instead, entrepreneurs should “bootstrap” their businesses, or grow them organically out of their own revenue streams.
While every company can’t become Microsoft or Apple, there’s no reason to think that by using these and other tips, your tech company won’t be able to take its place among the greats of Silicon Valley.